Tata Motors Q1 report: Profit jumps 74% to Rs 5,566 crore on JLR boost

Tata Motors on Thursday said its consolidated net profit increased 74 per cent to Rs 5,566 crore in the June 2024 quarter, aided by robust performance by Jaguar Land Rover as well as domestic business.

The Mumbai-based auto major had posted a net profit of Rs 3,203 crore in the April-June quarter of last fiscal.

Total income increased to Rs 1,09,623 crore for the period under review against Rs 1,03,597 crore in the June quarter in FY24, Tata Motors said in a regulatory filing.

On a standalone basis, the automaker said its net profit stood at Rs 2,190 crore compared with a net loss of Rs 64 crore in the year-ago period.

Total income rose to Rs 18,851 crore for the first quarter against Rs 16,132 crore in FY24.

Jaguar Land Rover reported a revenue of 7.3 billion pounds, the best first-quarter revenue on record, up 5 per cent versus the June quarter of FY24.

The higher profitability year-on-year reflects favourable volume, mix and material cost improvements, offset partially by increased marketing spend compared to a year ago, it stated.
"The first quarter has carried forward the momentum of last year with all businesses continuing to deliver on their distinctive strategies. We are confident of sustaining the performance in the coming quarters and delivering a strong year," Tata Motors Group Chief Financial Officer PB Balaji said.

On the overall business outlook, the auto major stated: "Global demand is likely to remain muted and we expect gradual improvement in domestic demand during the rest of the year on account of continued investments in infrastructure, healthy monsoons, favourable macros and festive demand." Commodities are likely to remain range-bound, it added.

For JLR, it said, "Looking ahead, we are likely to witness constrained production in Q2 and Q3 reflecting the annual summer plant shutdown and floods at a key aluminum supplier." The automaker stated that its commercial vehicle sales in the domestic market in the April-June quarter increased 7 per cent year-on-year to 87,615 units as compared with Q1 of FY24.

"...The widespread onset of monsoon, expectations of policy continuity in the forthcoming budget and thrust on infrastructure should be conducive towards improving overall demand for commercial vehicles," Tata Motors Executive Director Girish Wagh said.

The company said its passenger vehicle wholesales in the domestic market in the first quarter declined 1.1 per cent year-on-year compared to the year-ago period.

"The passenger vehicle industry in Q1 FY25 witnessed retail (registrations) moderating, impacted by the general elections and intense heat waves across the country," Tata Motors Passenger Vehicles MD Shailesh Chandra said.

He added, "Going forward, we expect an improvement in overall sales on the back of the onset of the festive season and the launch of Curvv, India's first SUV Coupe." Tata Motors said its board has approved the Scheme of Demerger of Tata Motors into two separate listed companies.

As a part of the Scheme, TML will demerge its commercial vehicle undertaking involving the commercial vehicle business (all the assets, liabilities and employees relating to the commercial vehicle business) and all its related investments into TMLCV.

Further, pursuant to the scheme, the existing passenger vehicle business in TMPV, will be merged into TML, the existing listed entity.

Upon the scheme becoming effective, both TMLCV and TML will be renamed, resulting in two separate listed entities.

These actions would further empower the respective business groups to pursue their differentiated strategies with greater agility while reinforcing accountability and will enhance shareholder value, the auto major said.
The scheme will not have any adverse impact on employees, customers, creditors and other business partner, it added.

The scheme is subject to all the necessary shareholder, creditor and regulatory approvals which can take around 12-15 months to complete, Tata Motors said.

The company further said that the merger of Tata Motors Finance with Tata Capital is also underway and expected to conclude over the course of the next 9 to 12 months.
Shares of Tata Motors ended 1.02 per cent down at Rs 1,144.60 apiece on the BSE.